Jordan Islamic Bank Q1 net surges to $11m

Manama, May 24, 2009

Jordan Islamic Bank achieved a net profit of 8.09 million Jordanian dinars ($11.41 million) in the first quarter, reflecting an increase of three per cent.

Total assets of the bank, a subsidiary of Albaraka Banking Group (ABG), increased by 10 per cent, liquid assets by 6.5 per cent, finance by 15 per cent, deposits by 10 per cent and shareholders equity by 20 per cent at the end of March compared to the same period last year.

The bank's financial results for the first quarter showed that operating income dropped by 19 per cent compared to the same period last year to reach 15.02 million dinars ($21.18 million).

The reason behind this drop was that the income of the first quarter last year included certain extraordinary profits from the sale of non-trading investments. If this extraordinary income were to be excluded, the total operating income for the first quarter this year would rise by about 9 per cent over the same period of last year.

After deducting all expenses, taxes and provisions which the bank had prudently increased in light of the prevailing economic conditions, the net profit amounted to 8.09 million dinars ($ 11.41 million), an increase of 3 per cent compared to the same period last year.

Total assets increased by 3 per cent to 1.91 billion dinars ($2.69 billion) at the end of March, compared to the end of December. This increase was invested in enhancing the liquid assets by 3.5 per cent to 713.3 million dinars ($1.01 billion), which represents 44.1 per cent of the total deposits and reflects the strong liquidity position of the bank. The finance increased by 4.1 per cent to 968.64 million dinars ($1.36 billion).

These increases have been achieved by enhancing the deposit base and the unrestricted investment accounts, including bank deposits, which increased by 4.2 per cent to 1.62 billion dinars ($2.28 billion), and financed 85 per cent of total assets, an indication of the strong customer base of the bank. Shareholders equity increased by 5 per cent to 169.07 million dinars ($238.47 million).

Jordan Islamic Bank chairman of the board of directors and ABG president and chief executive Adnan Ahmed Yousif praised the excellent financial results achieved by the bank in spite of the difficult conditions being experienced by the regional and global economies.

Jordan Islamic Bank vice-chairman of the board of directors and general manager Musa Abdul Aziz Shihadeh said that the results of the bank had highlighted its continued successes and ability to strengthen its financial position, and by this gave a good example of the success of the Islamic banking system and model in Jordan and its ability to cope with all challenges.

Yousif said the bank continued to work on maintaining a steady pace of growth, seeking to achieve balanced returns to both shareholders and employees and working towards increasing its market share.-TradeArabia News Service